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WE ARE OFFERING A FULLY RENOVATED HOUSE AT 90,000$ DISCOUNT. COME VIEW THIS HOME THIS SUNDAY DECEMBER 13th FROM 2-4PM. DON'T MISS OUT ON THIS FABULOUS DEAL.
FOR MORE INFORMATION LOGON TO www.joeysells.ca
Wednesday, December 9, 2009
Why choose a Realtor?
Real Estate Agent Duties: What to Expect from Your Agent
Buying or selling real estate is a complex and lengthy process. It is therefore wise to enlist the help of a real estate agent. A real estate agent can provide many useful services and work with you in different ways.Very few consumers are familiar with the duties and responsibilities of their real estate agent or broker. As a result, a number of problems can arise during the various steps of a real estate transaction when consumers are not aware of their rights. This article addresses the various types of working relationships that may be available to you. It should help you decide which relationship you want to have with a real estate agent. It will also give you useful information about the various services real estate agents can provide buyers and sellers, and it will help explain how real estate agents are paid.In some real estate transactions, the agent works for the seller. In others, the seller and buyer may each have their own agent. And sometimes the same agent works for both the buyer and the seller. It is important for you to know whether an agent is working for you as your agent or simply working with you while acting as an agent of the other party.Listing AgentA listing agent is also known as a seller's agent because they represent the seller. A listing agent can be a real estate broker or a real estate agent. These types of agents owe a fiduciary responsibility to the seller under a listing agreement and must protect that interest.
The seller's agent helps determine the price of the home, suggests how to market the home, schedules advertising and open houses, shows the home to prospective buyers, and otherwise facilitates the sale.
Your property will be listed with the agent's real estate brokerage. You will be asked to sign a "listing agreement" authorizing the brokerage and its agent to represent you in your dealings with buyers as your seller's agent. Be sure to read and understand the listing agreement before you sign it.
For representing you and helping you sell your property, you will pay the listing firm a sales commission or fee. The listing agreement must state the amount or method for determining the commission or fee and whether you will allow the firm to share its commission with agents representing the buyer.
Buyer's AgentA buyer's agent is known as the "showing agent" and works with buyers to find a suitable property, contacts the listing agents, negotiates the best possible price and terms for the buyers, monitors the transaction, and sometimes help to obtain financing.
In most cases, the seller pays the sales commission that is shared by the two agents. However sometimes you may be required to pay your buyer's agent out of your own pocket if the listing agent refuses to pay. Whatever the case, be sure your compensation arrangement with your buyer's agent is spelled out in a buyer agency agreement before you make an offer to purchase property and that you carefully read and understand the compensation provision.
Buyer's agents may or may not require a buyer to sign a buyer's broker agreement, depending on local custom.
Dual AgentDual agency occurs when a real estate agent is representing both buyer and seller in the same transaction. Dual agency can happen even if the there are two agents involved—a listing agent and a buyer's agent—if both agents work for the same broker. That's because it is the real estate broker who creates the agency.
It may be difficult for a dual agent to advance the interests of both the buyer and seller. Nevertheless, a dual agent must treat buyers and sellers fairly and equally. Although the dual agent owes them the same duties, buyers and sellers can prohibit dual agents from divulging certain confidential information about them to the other party.
Some firms also offer a form of dual agency called "designated agency" where one agent in the firm represents the seller and another agent represents the buyer. This option (when available) may allow each "designated agent" to more fully represent each party.
If you choose the "dual agency" option, remember that since a dual agent's loyalty is divided between parties with competing interests, it is especially important that you have a clear understanding of what your relationship is with the dual agent and what the agent will be doing for you in the transaction,
Buying or selling real estate is a complex and lengthy process. It is therefore wise to enlist the help of a real estate agent. A real estate agent can provide many useful services and work with you in different ways.Very few consumers are familiar with the duties and responsibilities of their real estate agent or broker. As a result, a number of problems can arise during the various steps of a real estate transaction when consumers are not aware of their rights. This article addresses the various types of working relationships that may be available to you. It should help you decide which relationship you want to have with a real estate agent. It will also give you useful information about the various services real estate agents can provide buyers and sellers, and it will help explain how real estate agents are paid.In some real estate transactions, the agent works for the seller. In others, the seller and buyer may each have their own agent. And sometimes the same agent works for both the buyer and the seller. It is important for you to know whether an agent is working for you as your agent or simply working with you while acting as an agent of the other party.Listing AgentA listing agent is also known as a seller's agent because they represent the seller. A listing agent can be a real estate broker or a real estate agent. These types of agents owe a fiduciary responsibility to the seller under a listing agreement and must protect that interest.
The seller's agent helps determine the price of the home, suggests how to market the home, schedules advertising and open houses, shows the home to prospective buyers, and otherwise facilitates the sale.
Your property will be listed with the agent's real estate brokerage. You will be asked to sign a "listing agreement" authorizing the brokerage and its agent to represent you in your dealings with buyers as your seller's agent. Be sure to read and understand the listing agreement before you sign it.
For representing you and helping you sell your property, you will pay the listing firm a sales commission or fee. The listing agreement must state the amount or method for determining the commission or fee and whether you will allow the firm to share its commission with agents representing the buyer.
Buyer's AgentA buyer's agent is known as the "showing agent" and works with buyers to find a suitable property, contacts the listing agents, negotiates the best possible price and terms for the buyers, monitors the transaction, and sometimes help to obtain financing.
In most cases, the seller pays the sales commission that is shared by the two agents. However sometimes you may be required to pay your buyer's agent out of your own pocket if the listing agent refuses to pay. Whatever the case, be sure your compensation arrangement with your buyer's agent is spelled out in a buyer agency agreement before you make an offer to purchase property and that you carefully read and understand the compensation provision.
Buyer's agents may or may not require a buyer to sign a buyer's broker agreement, depending on local custom.
Dual AgentDual agency occurs when a real estate agent is representing both buyer and seller in the same transaction. Dual agency can happen even if the there are two agents involved—a listing agent and a buyer's agent—if both agents work for the same broker. That's because it is the real estate broker who creates the agency.
It may be difficult for a dual agent to advance the interests of both the buyer and seller. Nevertheless, a dual agent must treat buyers and sellers fairly and equally. Although the dual agent owes them the same duties, buyers and sellers can prohibit dual agents from divulging certain confidential information about them to the other party.
Some firms also offer a form of dual agency called "designated agency" where one agent in the firm represents the seller and another agent represents the buyer. This option (when available) may allow each "designated agent" to more fully represent each party.
If you choose the "dual agency" option, remember that since a dual agent's loyalty is divided between parties with competing interests, it is especially important that you have a clear understanding of what your relationship is with the dual agent and what the agent will be doing for you in the transaction,
Real Estate Market Showing Large increases!
Ottawa, November 4, 2009 - Members of the Ottawa Real Estate Board sold 1,202 residential properties in October compared with 964 in October 2008, an increase of 24.7%. Of those sales, 270 were in the condominium property class, while 932 were in the residential property class.
“Once again we saw record-setting sales numbers for the month of October. This brings our sales year-to-date to four percentage points higher than the same period last year. Ottawa’s resale market has been buoyed by buyers taking advantage of low interest rates,” said Board President Rick Snell. “Listing inventory remains at a low level, and combined with brisk sales, indicates that we are still in a strong sellers’ market here in the capital,” he added.
The average sale price of residential properties, including condominiums, sold in October in the Ottawa area was $318,655, an increase of 13.6% over October 2008. The average sale price for a condominium-class property was $232,046, an increase of 14.6% over October 2008. The average sale price of a residential-class property was $343,745, an increase of 13.3% over October 2008.
“Once again we saw record-setting sales numbers for the month of October. This brings our sales year-to-date to four percentage points higher than the same period last year. Ottawa’s resale market has been buoyed by buyers taking advantage of low interest rates,” said Board President Rick Snell. “Listing inventory remains at a low level, and combined with brisk sales, indicates that we are still in a strong sellers’ market here in the capital,” he added.
The average sale price of residential properties, including condominiums, sold in October in the Ottawa area was $318,655, an increase of 13.6% over October 2008. The average sale price for a condominium-class property was $232,046, an increase of 14.6% over October 2008. The average sale price of a residential-class property was $343,745, an increase of 13.3% over October 2008.
Wednesday, November 18, 2009
OPEN HOUSE SATURDAY NOVEMBER 21st 2-4PM
Come have a visit with me and view our latest renovation. St.Lawrence Waterfront property 50mins from Ottawa. For more information click the link below to view the video walk through :
http://www.joeysells.ca/Cardinal/Ontario/Homes/Cardinal/Agent/Listing_2794423.html
Hope to see you there.
http://www.joeysells.ca/Cardinal/Ontario/Homes/Cardinal/Agent/Listing_2794423.html
Hope to see you there.
Monday, November 2, 2009
First attempt at a Video Walk through.
Hey all. Well I managed to get myself a cool little Kodiak Zi6 hand held video camera. My goal is to use this to improve my business and ensure all my clients get the most marketing possible. I have made a channel on Youtube.com called joeyvanbenthem. I will soon be changing it over to Joeysells in the near future. Please have a look at my first attempt of a video walk through by clicking on the link below.
Please leave me comments.
Please leave me comments.
Thursday, October 22, 2009
Bank of Canada reports new anticipated growth!
OTTAWA — The Bank of Canada expects consumer spending to expand considerably, aided by improved financial conditions, and business investment to finally post growth in early 2010 after five consecutive quarters of declines, according to its updated economic outlook released Thursday.
In its quarterly monetary policy report, the central bank upgraded its growth projections for the second half of 2009, anticipating expansion of two per cent for the third quarter and 3.3 per cent in the current three-month period. That's compared to its previous expectation of 1.3 per cent and three per cent, respectively.
The Bank of Canada said its forecast "hinges" on the resumption of growth in the global economy and the firming of commodity prices. Yet, it acknowledged the global recovery could be "even more protracted," as there is "modest" evidence that private-sector demand is poised to return and the unwinding of global trade imbalances could create "disorderly adjustments."
Plus, the Canadian dollar — which it assumes will trade at an average rate of 96 cents U.S. over its forecast period — will be a "drag" on the trade-oriented sector of the economy, with net exports expected to fall one per cent next year. The bank attributed the loonie's recent climb to over 97 cents U.S. to have been "increasingly driven by a broader appreciation of the U.S. dollar."
Domestic demand in Canada is set to boost the domestic recovery, with growth of three per cent next year and 3.3 per cent in 2011. According to the bank's outlook, consumer spending is set to contribute half of the 3.4 per cent gain in final domestic demand in 2010. In 2011, that contribution increases to roughly 75 per cent as government spending is wound down.
"Consumer spending is expected to grow at a solid pace throughout the projection horizon," the central bank said. "Improvements in wealth and in consumer confidence, as well as the re-emergence of demand postponed from previous quarters, will help to fuel spending."
The existing home sale market, especially in big urban centres, has recorded remarkable gains in recent months, leading some analysts to worry that an asset bubble may be forming due to low borrowing costs.
The central bank said it expects growth in housing investment to remain brisk until early 2010, but then slow down as pent-up demand for real estate is met, affordability declines and the federal home-renovation tax credit expires.
However, in detailing the risks to its outlook, the bank suggested that domestic demand could be stronger than anticipated, as households "may" increase their spending on goods and real estate as a recovery takes hold. Some economists have expressed concern that by keeping rates too low, households would be tempted to take on more debt, which they have done at an increasing pace during the recession. The central bank is scheduled to provide more details about household debt in its biannual financial stability report later this year.
The Bank of Canada has conditionally pledged to keep its record low policy rate of 0.25 per cent, in an effort to push inflation to the two per cent level — which it doesn't expect to happen until the latter half of 2011 due to "substantial excess supply" in the domestic economy that needs to be absorbed.
Government spending, through stimulus programs led by Ottawa's two-year, $46.6-billion scheme, will be the second biggest contributor to final domestic demand.
Business investment on capital and equipment is expected to turn slightly positive early 2010, the bank projected. Growth in this area is expected to lag the recovery due to the large amounts of unused capacity, but then rebound strongly once a recovery takes hold and commodity prices — such as natural gas — move higher.
The central bank's outlook for Canadian economy, at least for next year, is rosier than its view on the U.S., which it expects to expand 1.8 per cent next year, and Europe, at a meagre 0.9 per cent.
The global economy, as a whole, is set to grow 3.1 per cent in 2010, an improvement from its previous expectation of 2.3 per cent, led by China's 8.9 per cent expansion.
It said the global recovery is expected to be more gradual than usual as underlying private demand will recovery "slowly" as "significant balance-sheet and structural adjustments (global trade imbalances) run their course."
© Copyright (c) Canwest News Service
In its quarterly monetary policy report, the central bank upgraded its growth projections for the second half of 2009, anticipating expansion of two per cent for the third quarter and 3.3 per cent in the current three-month period. That's compared to its previous expectation of 1.3 per cent and three per cent, respectively.
The Bank of Canada said its forecast "hinges" on the resumption of growth in the global economy and the firming of commodity prices. Yet, it acknowledged the global recovery could be "even more protracted," as there is "modest" evidence that private-sector demand is poised to return and the unwinding of global trade imbalances could create "disorderly adjustments."
Plus, the Canadian dollar — which it assumes will trade at an average rate of 96 cents U.S. over its forecast period — will be a "drag" on the trade-oriented sector of the economy, with net exports expected to fall one per cent next year. The bank attributed the loonie's recent climb to over 97 cents U.S. to have been "increasingly driven by a broader appreciation of the U.S. dollar."
Domestic demand in Canada is set to boost the domestic recovery, with growth of three per cent next year and 3.3 per cent in 2011. According to the bank's outlook, consumer spending is set to contribute half of the 3.4 per cent gain in final domestic demand in 2010. In 2011, that contribution increases to roughly 75 per cent as government spending is wound down.
"Consumer spending is expected to grow at a solid pace throughout the projection horizon," the central bank said. "Improvements in wealth and in consumer confidence, as well as the re-emergence of demand postponed from previous quarters, will help to fuel spending."
The existing home sale market, especially in big urban centres, has recorded remarkable gains in recent months, leading some analysts to worry that an asset bubble may be forming due to low borrowing costs.
The central bank said it expects growth in housing investment to remain brisk until early 2010, but then slow down as pent-up demand for real estate is met, affordability declines and the federal home-renovation tax credit expires.
However, in detailing the risks to its outlook, the bank suggested that domestic demand could be stronger than anticipated, as households "may" increase their spending on goods and real estate as a recovery takes hold. Some economists have expressed concern that by keeping rates too low, households would be tempted to take on more debt, which they have done at an increasing pace during the recession. The central bank is scheduled to provide more details about household debt in its biannual financial stability report later this year.
The Bank of Canada has conditionally pledged to keep its record low policy rate of 0.25 per cent, in an effort to push inflation to the two per cent level — which it doesn't expect to happen until the latter half of 2011 due to "substantial excess supply" in the domestic economy that needs to be absorbed.
Government spending, through stimulus programs led by Ottawa's two-year, $46.6-billion scheme, will be the second biggest contributor to final domestic demand.
Business investment on capital and equipment is expected to turn slightly positive early 2010, the bank projected. Growth in this area is expected to lag the recovery due to the large amounts of unused capacity, but then rebound strongly once a recovery takes hold and commodity prices — such as natural gas — move higher.
The central bank's outlook for Canadian economy, at least for next year, is rosier than its view on the U.S., which it expects to expand 1.8 per cent next year, and Europe, at a meagre 0.9 per cent.
The global economy, as a whole, is set to grow 3.1 per cent in 2010, an improvement from its previous expectation of 2.3 per cent, led by China's 8.9 per cent expansion.
It said the global recovery is expected to be more gradual than usual as underlying private demand will recovery "slowly" as "significant balance-sheet and structural adjustments (global trade imbalances) run their course."
© Copyright (c) Canwest News Service
Monday, October 19, 2009
AMAZING DEAL SUNDAY OCTOBER 25TH/2009
WE ARE CURRENTLY OFFERING A ONE DAY ONLY SALE ON OUR LATEST RENOVATION PROJECT. WE SPENT NEARLY $100,000 ON THIS PROPERTY AFTER PURCHASING IT IN APRIL 2009. THE HOME STARTED OUT ON THE MARKET AT 389K. WE ARE NOW OFFERING IT FOR ONE DAY ONLY SUNDAY OCTOBER 25TH FROM 2-4PM TO YOU FOR 40K LESS THEN ITS ORIGINAL LIST PRICE. FOR ONE DAY YOU CAN OWN THIS ST.LAWRENCE WATERFRONT RENOVATED DREAM FOR $349,900! COME AND VISIT ME ON SUNDAY AND LETS DO A DEAL.
TO VIEW THIS PROPERTY CLICK : http://www.joeysells.ca/Cardinal/Ontario/Homes/Cardinal/Agent/Listing_2794423.html
TO VIEW THIS PROPERTY CLICK : http://www.joeysells.ca/Cardinal/Ontario/Homes/Cardinal/Agent/Listing_2794423.html
Thursday, October 15, 2009
Hmmm... Renting Vs Buying The breakdown!
Many Canadians spend a lot of time thinking about Buying a home or Renting a home and what the benefits of each are. Granted for most the whole decision is always based on payments per month and not the true breakdown of what HomeOwnership can do for you in the future months. I have decided after reading an article that maybe a great blog post would be on the benefits of Renting and the benefits of HomeOwnership and all the things you should consider when making your choices.
Lets start with Renting. Renting is a great solution for many folks. If you are in school it can be cost effective in many ways. You could get a place in a neighborhood close to where you are attending school and not feel forced to stay there if you don't like it due to a mortgage. If you are new to a city then renting can also be an excellent solution so you can discover the different areas of town and decide which one best suits you. Is renting cost effective? Well I guess in a way yes. You are responsible for your rent payment, your utilities in most cases and that is really it. If the plumbing explodes or furnace quits that all becomes the problem of the Landlord. However what if you encounter a slumlord? What if when the furnace breaks you find out that the Landlord will not fix it? Yes I guess you could pack up and move, however that is rather inconvienent now isn't it? Granted we have the rentals tribunal it usually takes a long time to get them to take action and by then you have frozen into a popsicle and are very hostile about the whole living quarters. However there are many positive sides as well. Renting is more or less a carefree environment. You don't have to paint you can just live, you don't really hold any sort of subjective value to the home because truly it is only yours for a short period of time until you decide it's time to move on. So lets just gather our facts here :
Renting Pros:
1. No longterm Commitment
2. No responsibility for home systems
3. Figure out the city and where you would want to purchase.
4. Seems more affordable.
5. Easier solution???
Now lets talk a bit about purchasing a home and the benefits of that. Buying a house can have many advantages. When you buy a home it is yours. You get to make all the decisions regarding cosmetics, flooring, lawn landscaping etc. However it can be a scary thing as well. You have to live in a purchased home for a year or you get hit by the lovely capital gaines. You also have to make a substantial investment when purchasing. There is also that darn credit bureau thing as well. But if you have good credit and could purchase your own home how can it really benefit you? Well lets look.. When you purchase a home lets say for $225,000 you have to generally put down 5% which is equal to $11,250. So now your only mortgaging $211,250 + CMHC premium so likely in the $215,000 area. A payment on that amount of dollars at current interest rates is in the $1050 per month range for payment. Now in all honesty what does $1050 rent you in the Ottawa area? 2 bedroom apartment? Maybe a small house in a scary neighborhood where as a female you shouldn't be out alone past dark? Well lets go in further. What additional costs do you have that you won't while renting? Oh yes Property Tax. So lets go with a sound 3000$ / year for property taxes. So broken down into 12months that is the equivalent of $250 / month. SO right now on a purchase of $225,000 you are looking at $1300 / month. Now many when renting don't obtain house insurance, which really you should because you could get robbed or have fire just as easy there as you could in a home. House insurance is under a $1000 / year in most cases. So lets be realistic and say everything in without utilities you are looking at $1400/mth. Not to bad really. Well it is that $400 / month more then the $1000 / month scary rental but what are the benefits of owning? Well here it is. When you buy a home you gain what we like call networth and equity. The banks recognize homeowners differently as you now have responsibility's and something that provides you equitable value. Now lets say you bought this $225,000 property in the popular Barrhaven area. In a years time of payments you will have paid a chunk of that principal amount down that you owe especially considering low interest rates at this time. So not only have you paid down your debt you have also gained equity on the home. So if the consistancy of property value rise was 5% your home would now be worth $236,000. You only owe now $211,000. Plus you went ahead and with your income tax money added a new bathroom and some hardwood floors during that year so now your property is worth $245,000. Now what would happen if after a year and a half you decided you didn't like it there anymore or you had to move away? If you were renting you definately would not be walking away with any money in your hand now would you? But on this home that is now worth $245,000 and you have a $211,000 mortgage out on you are likely going to walkaway with $20,000 dollars in your pocket after everything is said and done. Do you think that is a worthwhile investment after 12 months of ownership? I would say. Now the major concern is what if our finances changed and we found it hard after a year or our car broke down or what have you? Well as your home builds value you gain that equity. So say your home is now worth $245,000 and your mortgage amount owing is $211,000 you would be able to remortgage your home anywhere up to 95% of value and use that money to help you out. It is a great feature of a mortgage. When your mortgage goes up in principle $20,000 dollars you are talking $20-$50 per month difference in payment. Now if we take $245,000 at 95% of value that is $232,750. So you could get yourself $21,000 if you needed it. There are lots of solutions in this situation and you are only paying into your future. If you can afford to buy a home this is the best solution. And do keep in mind that this is based on a $225,000 purchase. I could sell you a Condominium in Barrhaven with 2 bedrooms for under $180,000. Yes you would have a $185.00 condo fee per month ontop of the mortgage but it will still be cheaper then renting that exact same unit. Now if you are in school and working at the same time think about buying one and renting a room to your friend. Hey there is $500.00 more a month against it. So many possibilities they are endless.
So what are the pros of Buying?
1. EQUITY - Build yourself a financial platform.
2. Future. Best investment currently is a home. You get the most return.
3. IT'S YOURS!
If you want to discuss this further feel free to email me. If you want to get preapproved or check to see if you can receive a mortgage let me know and I will direct you to my Mortgage Agent Professional.
Thanks all and keep smiling... Life is grand when you let it be!
Lets start with Renting. Renting is a great solution for many folks. If you are in school it can be cost effective in many ways. You could get a place in a neighborhood close to where you are attending school and not feel forced to stay there if you don't like it due to a mortgage. If you are new to a city then renting can also be an excellent solution so you can discover the different areas of town and decide which one best suits you. Is renting cost effective? Well I guess in a way yes. You are responsible for your rent payment, your utilities in most cases and that is really it. If the plumbing explodes or furnace quits that all becomes the problem of the Landlord. However what if you encounter a slumlord? What if when the furnace breaks you find out that the Landlord will not fix it? Yes I guess you could pack up and move, however that is rather inconvienent now isn't it? Granted we have the rentals tribunal it usually takes a long time to get them to take action and by then you have frozen into a popsicle and are very hostile about the whole living quarters. However there are many positive sides as well. Renting is more or less a carefree environment. You don't have to paint you can just live, you don't really hold any sort of subjective value to the home because truly it is only yours for a short period of time until you decide it's time to move on. So lets just gather our facts here :
Renting Pros:
1. No longterm Commitment
2. No responsibility for home systems
3. Figure out the city and where you would want to purchase.
4. Seems more affordable.
5. Easier solution???
Now lets talk a bit about purchasing a home and the benefits of that. Buying a house can have many advantages. When you buy a home it is yours. You get to make all the decisions regarding cosmetics, flooring, lawn landscaping etc. However it can be a scary thing as well. You have to live in a purchased home for a year or you get hit by the lovely capital gaines. You also have to make a substantial investment when purchasing. There is also that darn credit bureau thing as well. But if you have good credit and could purchase your own home how can it really benefit you? Well lets look.. When you purchase a home lets say for $225,000 you have to generally put down 5% which is equal to $11,250. So now your only mortgaging $211,250 + CMHC premium so likely in the $215,000 area. A payment on that amount of dollars at current interest rates is in the $1050 per month range for payment. Now in all honesty what does $1050 rent you in the Ottawa area? 2 bedroom apartment? Maybe a small house in a scary neighborhood where as a female you shouldn't be out alone past dark? Well lets go in further. What additional costs do you have that you won't while renting? Oh yes Property Tax. So lets go with a sound 3000$ / year for property taxes. So broken down into 12months that is the equivalent of $250 / month. SO right now on a purchase of $225,000 you are looking at $1300 / month. Now many when renting don't obtain house insurance, which really you should because you could get robbed or have fire just as easy there as you could in a home. House insurance is under a $1000 / year in most cases. So lets be realistic and say everything in without utilities you are looking at $1400/mth. Not to bad really. Well it is that $400 / month more then the $1000 / month scary rental but what are the benefits of owning? Well here it is. When you buy a home you gain what we like call networth and equity. The banks recognize homeowners differently as you now have responsibility's and something that provides you equitable value. Now lets say you bought this $225,000 property in the popular Barrhaven area. In a years time of payments you will have paid a chunk of that principal amount down that you owe especially considering low interest rates at this time. So not only have you paid down your debt you have also gained equity on the home. So if the consistancy of property value rise was 5% your home would now be worth $236,000. You only owe now $211,000. Plus you went ahead and with your income tax money added a new bathroom and some hardwood floors during that year so now your property is worth $245,000. Now what would happen if after a year and a half you decided you didn't like it there anymore or you had to move away? If you were renting you definately would not be walking away with any money in your hand now would you? But on this home that is now worth $245,000 and you have a $211,000 mortgage out on you are likely going to walkaway with $20,000 dollars in your pocket after everything is said and done. Do you think that is a worthwhile investment after 12 months of ownership? I would say. Now the major concern is what if our finances changed and we found it hard after a year or our car broke down or what have you? Well as your home builds value you gain that equity. So say your home is now worth $245,000 and your mortgage amount owing is $211,000 you would be able to remortgage your home anywhere up to 95% of value and use that money to help you out. It is a great feature of a mortgage. When your mortgage goes up in principle $20,000 dollars you are talking $20-$50 per month difference in payment. Now if we take $245,000 at 95% of value that is $232,750. So you could get yourself $21,000 if you needed it. There are lots of solutions in this situation and you are only paying into your future. If you can afford to buy a home this is the best solution. And do keep in mind that this is based on a $225,000 purchase. I could sell you a Condominium in Barrhaven with 2 bedrooms for under $180,000. Yes you would have a $185.00 condo fee per month ontop of the mortgage but it will still be cheaper then renting that exact same unit. Now if you are in school and working at the same time think about buying one and renting a room to your friend. Hey there is $500.00 more a month against it. So many possibilities they are endless.
So what are the pros of Buying?
1. EQUITY - Build yourself a financial platform.
2. Future. Best investment currently is a home. You get the most return.
3. IT'S YOURS!
If you want to discuss this further feel free to email me. If you want to get preapproved or check to see if you can receive a mortgage let me know and I will direct you to my Mortgage Agent Professional.
Thanks all and keep smiling... Life is grand when you let it be!
CREA ANNOUNCES HOUSING MARKET GAINING EXTREME STRENGTH IN 3RD QUARTER!
MLS® home sales grow stronger in the third quarter
OTTAWA – October 15th, 2009 – National resale housing activity climbed to the highest level of any third quarter on record.
Actual (not seasonally adjusted) home sales via the Multiple Listing Service® (MLS®) Systems of Canadian real estate boards totalled 135,182 units in the third quarter of 2009, according to statistics released by The Canadian Real Estate Association (CREA). This is the highest level of activity on record for the period from July to September. The number of transactions was up 18 per cent from the third quarter of last year, representing the biggest year-over-year increase since early 2002.
Seasonally adjusted national MLS® home sales numbered 127,941 units in the third quarter, up 12 per cent from the previous quarter. Building on two previous quarterly increases, seasonally adjusted MLS® home sales activity now stands 48 per cent above the low reached in the fourth quarter last year.
"Momentum for sales activity remained strong throughout the third quarter," said CREA President Dale Ripplinger. "Low interest rates, rebounding consumer confidence and an improving overall sense of economic security continue to draw homebuyers to the housing market."
Seasonally adjusted sales activity in the third quarter was up from the previous quarter in over 80 per cent of local markets. Quarterly activity increases in Vancouver (34 per cent), Toronto (11 per cent), and Calgary (19 per cent) contributed most to the national increase in activity.
Some 42,958 homes traded hands via the MLS® Systems of real estate boards in Canada in September 2009 on a seasonally adjusted basis. This represents an increase of 1.5 per cent from August, and lifts seasonally adjusted activity 63 per cent above the low in January.
Actual (not seasonally adjusted) MLS® home sales activity remained strong throughout the quarter. Resale activity in September 2009 posted the fourth consecutive increase from year-ago levels, all of which exceeded 15 per cent. Sales numbered 42,497 in September, up 17 per cent year-over-year and a new record for the month. Year-over-year activity increases in Toronto (28 per cent) and Vancouver (124 per cent) were the driving force behind the increase in actual (not seasonally adjusted) national sales activity in September.
Climbing to $327,736, the national MLS® residential average price rose 11 per cent from the same quarter last year. The national average price continues to be skewed upward by a sustained increase in sales activity, including a sharp rebound in activity at the higher end of the price spectrum, in some of Canada’s priciest markets.
The national MLS® residential average price surpassed all previous monthly levels in September 2009, rising 13.6 per cent year-over-year to $331,602. July and August also posted new average price records for their respective months. A number of provinces set new average price records for the month of September, and Ontario posted the highest average price on record.
The price trend is similar but less dramatic for the weighted national MLS® average price, which compensates for changes in provincial sales activity by taking into account provincial proportions of privately owned housing stock. The weighted national MLS® average sale price was up 9.3 per cent year-over-year in September 2009.
On a seasonally adjusted basis, the supply of homes coming onto the MLS® market edged up in the third quarter after four consecutive quarterly declines. Seasonally adjusted MLS® residential new listings were up one per cent from the previous quarter to 199,824 units. The increase reflects a quarterly rise in the number of new listings in British Columbia and Ontario, Prince Edward Island, and Newfoundland & Labrador. New listings remained stable or continued to retreat in other provinces.
While the small rise in seasonally adjusted new listings suggests that the number of homes coming onto the market may soon begin to edge higher, the number of new listings remains well down from year-ago levels. Barring a sudden unforeseen spike in levels, new listings are likely to remain down from year-ago levels for some time.
Actual (not seasonally adjusted) new listings were down 12.5 per cent compared to the third quarter of 2008 after posting year-over-year decreases in each of the previous quarters. Newfoundland & Labrador is the only province in which new listings were up from year-ago levels.
An increase in sales activity and fewer new listings are drawing down inventories compared to year-ago levels. There were 208,215 homes listed for sale on the MLS® Systems of real estate boards in Canada at the end of September 2009, down 16 per cent from a year earlier. This is the fifth consecutive year-over-year decline in active listings, and the largest decline in more than six years.
Nationally, the number of months of inventory was 4.9 months in September 2009. This is down slightly compared to August, and remains well down from the recessionary peak of 12.8 months in January 2009. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.
The seasonally adjusted residential dollar volume for MLS® home sales increased 20 per cent on a quarter-overquarter basis to $42.1 billion in the third quarter of 2009, the highest level on record. New provincial records were also set in British Columbia and Ontario, which propelled the national figure to a new high.
"Monthly sales activity remained on a strong upward trajectory throughout the third quarter in British Columbia, while showing signs that it may be topping out in other provinces," said CREA Chief Economist Gregory Klump. "On balance, this suggests that sales activity may be starting to plateau after having climbed rapidly earlier this year."
"Headline average price increases over the rest of the year are expected to prompt sellers to return to the market after having retreated to the sidelines late last year and earlier this year," he added. "An increase in new listings will help keep a lid on price increases. Price increases over the rest of 2009 and early next year are likely to reflect declining average prices late last year and earlier this year."
PLEASE NOTE: The information contained in this news release combines both major market and
national MLS® sales information from the previous month. The Canadian Real Estate Association has previously released these separately.
CREA cautions that average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighborhoods or account for price differential between geographic areas. Statistical information contained in this report includes all housing types.
MLS® is a co-operative marketing system used only by Canada’s real estate Boards to ensure maximum exposure of properties listed for sale.
The Canadian Real Estate Association (CREA) is one of Canada’s largest single-industry trade associations, representing more than 96,000 REALTORS® working through more than 100 real estate Boards and Associations. Further information can be found at www.crea.ca.
For more information, please contact:
Alyson Fair, Publicist
613-237-7111 or 613-884-1460
Email: afair@crea.ca
OTTAWA – October 15th, 2009 – National resale housing activity climbed to the highest level of any third quarter on record.
Actual (not seasonally adjusted) home sales via the Multiple Listing Service® (MLS®) Systems of Canadian real estate boards totalled 135,182 units in the third quarter of 2009, according to statistics released by The Canadian Real Estate Association (CREA). This is the highest level of activity on record for the period from July to September. The number of transactions was up 18 per cent from the third quarter of last year, representing the biggest year-over-year increase since early 2002.
Seasonally adjusted national MLS® home sales numbered 127,941 units in the third quarter, up 12 per cent from the previous quarter. Building on two previous quarterly increases, seasonally adjusted MLS® home sales activity now stands 48 per cent above the low reached in the fourth quarter last year.
"Momentum for sales activity remained strong throughout the third quarter," said CREA President Dale Ripplinger. "Low interest rates, rebounding consumer confidence and an improving overall sense of economic security continue to draw homebuyers to the housing market."
Seasonally adjusted sales activity in the third quarter was up from the previous quarter in over 80 per cent of local markets. Quarterly activity increases in Vancouver (34 per cent), Toronto (11 per cent), and Calgary (19 per cent) contributed most to the national increase in activity.
Some 42,958 homes traded hands via the MLS® Systems of real estate boards in Canada in September 2009 on a seasonally adjusted basis. This represents an increase of 1.5 per cent from August, and lifts seasonally adjusted activity 63 per cent above the low in January.
Actual (not seasonally adjusted) MLS® home sales activity remained strong throughout the quarter. Resale activity in September 2009 posted the fourth consecutive increase from year-ago levels, all of which exceeded 15 per cent. Sales numbered 42,497 in September, up 17 per cent year-over-year and a new record for the month. Year-over-year activity increases in Toronto (28 per cent) and Vancouver (124 per cent) were the driving force behind the increase in actual (not seasonally adjusted) national sales activity in September.
Climbing to $327,736, the national MLS® residential average price rose 11 per cent from the same quarter last year. The national average price continues to be skewed upward by a sustained increase in sales activity, including a sharp rebound in activity at the higher end of the price spectrum, in some of Canada’s priciest markets.
The national MLS® residential average price surpassed all previous monthly levels in September 2009, rising 13.6 per cent year-over-year to $331,602. July and August also posted new average price records for their respective months. A number of provinces set new average price records for the month of September, and Ontario posted the highest average price on record.
The price trend is similar but less dramatic for the weighted national MLS® average price, which compensates for changes in provincial sales activity by taking into account provincial proportions of privately owned housing stock. The weighted national MLS® average sale price was up 9.3 per cent year-over-year in September 2009.
On a seasonally adjusted basis, the supply of homes coming onto the MLS® market edged up in the third quarter after four consecutive quarterly declines. Seasonally adjusted MLS® residential new listings were up one per cent from the previous quarter to 199,824 units. The increase reflects a quarterly rise in the number of new listings in British Columbia and Ontario, Prince Edward Island, and Newfoundland & Labrador. New listings remained stable or continued to retreat in other provinces.
While the small rise in seasonally adjusted new listings suggests that the number of homes coming onto the market may soon begin to edge higher, the number of new listings remains well down from year-ago levels. Barring a sudden unforeseen spike in levels, new listings are likely to remain down from year-ago levels for some time.
Actual (not seasonally adjusted) new listings were down 12.5 per cent compared to the third quarter of 2008 after posting year-over-year decreases in each of the previous quarters. Newfoundland & Labrador is the only province in which new listings were up from year-ago levels.
An increase in sales activity and fewer new listings are drawing down inventories compared to year-ago levels. There were 208,215 homes listed for sale on the MLS® Systems of real estate boards in Canada at the end of September 2009, down 16 per cent from a year earlier. This is the fifth consecutive year-over-year decline in active listings, and the largest decline in more than six years.
Nationally, the number of months of inventory was 4.9 months in September 2009. This is down slightly compared to August, and remains well down from the recessionary peak of 12.8 months in January 2009. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.
The seasonally adjusted residential dollar volume for MLS® home sales increased 20 per cent on a quarter-overquarter basis to $42.1 billion in the third quarter of 2009, the highest level on record. New provincial records were also set in British Columbia and Ontario, which propelled the national figure to a new high.
"Monthly sales activity remained on a strong upward trajectory throughout the third quarter in British Columbia, while showing signs that it may be topping out in other provinces," said CREA Chief Economist Gregory Klump. "On balance, this suggests that sales activity may be starting to plateau after having climbed rapidly earlier this year."
"Headline average price increases over the rest of the year are expected to prompt sellers to return to the market after having retreated to the sidelines late last year and earlier this year," he added. "An increase in new listings will help keep a lid on price increases. Price increases over the rest of 2009 and early next year are likely to reflect declining average prices late last year and earlier this year."
PLEASE NOTE: The information contained in this news release combines both major market and
national MLS® sales information from the previous month. The Canadian Real Estate Association has previously released these separately.
CREA cautions that average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighborhoods or account for price differential between geographic areas. Statistical information contained in this report includes all housing types.
MLS® is a co-operative marketing system used only by Canada’s real estate Boards to ensure maximum exposure of properties listed for sale.
The Canadian Real Estate Association (CREA) is one of Canada’s largest single-industry trade associations, representing more than 96,000 REALTORS® working through more than 100 real estate Boards and Associations. Further information can be found at www.crea.ca.
For more information, please contact:
Alyson Fair, Publicist
613-237-7111 or 613-884-1460
Email: afair@crea.ca
Wednesday, October 14, 2009
First time home buyers need to take advantage NOW.
Hi everyone...
I wanted to just touch base on the interest rates quickly. Bank of Canada has been placing two articles a week in the National Post and Citizen as well as some of the more popular papers in the Toronto area. It has become recognized that the market is severely improving as the days go by. What does this mean? As the market gains strength again and more homes start selling in shorter periods of time Bank of Canada is going to raise the mortgage interest rates. I think it is important as a Buyer that you understand that you can save thousands of dollars on your mortgage in 5 years by saving a percent on your interest rate. Now is the time to buy. I think if you are looking to make a move or upgrade to a larger home you should consider it now. Not only are you going to get to take advantage of a Sellers market where there is not much available on the market you are also going to get to capitalize on a very low interest rate. Don't wait to long we can only foreshadow so far into the future. Take advantage of what we know today!
If you are looking to purchase a home keep Kemptville, North Gower, Osgoode in mind we have lovely communities out this way and the house prices are very appealing. Logon to www.joeysells.ca to apply to become a vip buyer and lets get shopping!
I wanted to just touch base on the interest rates quickly. Bank of Canada has been placing two articles a week in the National Post and Citizen as well as some of the more popular papers in the Toronto area. It has become recognized that the market is severely improving as the days go by. What does this mean? As the market gains strength again and more homes start selling in shorter periods of time Bank of Canada is going to raise the mortgage interest rates. I think it is important as a Buyer that you understand that you can save thousands of dollars on your mortgage in 5 years by saving a percent on your interest rate. Now is the time to buy. I think if you are looking to make a move or upgrade to a larger home you should consider it now. Not only are you going to get to take advantage of a Sellers market where there is not much available on the market you are also going to get to capitalize on a very low interest rate. Don't wait to long we can only foreshadow so far into the future. Take advantage of what we know today!
If you are looking to purchase a home keep Kemptville, North Gower, Osgoode in mind we have lovely communities out this way and the house prices are very appealing. Logon to www.joeysells.ca to apply to become a vip buyer and lets get shopping!
Tuesday, October 13, 2009
Kemptville Homes
Hello everyone!
I have just recently logged back into Active Rain. I have recently rejoined the Royal Lepage team in Manotick. I am happy to be back and have been working hard to get myself back to the top of the charts. I wanted to talk about Kemptville homes today. Kemptville is a growing community that has a lot of future plans. We have just recently had a new fire station, police station, as well as a new community centre. Were you aware that one of Canadas top High Schools is right here in Kemptville? St. Michaels Catholic High School is rated in the top 3 best academic schools in Canada.
Kemptville has been going through some big changes in the last 4 - 5 years. We have several new large developments that are underway here. Parkview Homes has introduced two new communities to our town. One is on the Western Edge of town and offers acre - 2acre lots with custom homes available to you. They also have there Van Buren St community that offers many different models and more of a town feeling within walking distance to grocery stores and so on. We also have the Equinelle home project that is located on the Northern edge of town. This is a gorgeous development which surrounds a top class golf course. Equinelle is going to be a real eye catcher in the coming months. We also have our newest community off of Highway 43 the Westerra development which is taking off in high volume. Kemptville has a real promising future I believe and is going to expand to great levels.
Kemptville is also slotted to welcome Wal-Mart to our neighborhood in 2010. They have the parking lots all ready to bring the large store right into our town. It is also supposed to be accompanied by some big box stores as well. This location is right West of the 416 Highway at the County Rd 43 Kemptville exit.
If you are aware of anyone looking to make a move into a rural community that is 30 minutes to downtown Ottawa please do forward me there information. Kemptville is a great community and is surrounded by promising features and great environments for growing children.
www.joeysells.ca - Apply for your VIP Buyer List of homes in Rural Ottawa, FREE ONLINE HOME APPRAISAL
I have just recently logged back into Active Rain. I have recently rejoined the Royal Lepage team in Manotick. I am happy to be back and have been working hard to get myself back to the top of the charts. I wanted to talk about Kemptville homes today. Kemptville is a growing community that has a lot of future plans. We have just recently had a new fire station, police station, as well as a new community centre. Were you aware that one of Canadas top High Schools is right here in Kemptville? St. Michaels Catholic High School is rated in the top 3 best academic schools in Canada.
Kemptville has been going through some big changes in the last 4 - 5 years. We have several new large developments that are underway here. Parkview Homes has introduced two new communities to our town. One is on the Western Edge of town and offers acre - 2acre lots with custom homes available to you. They also have there Van Buren St community that offers many different models and more of a town feeling within walking distance to grocery stores and so on. We also have the Equinelle home project that is located on the Northern edge of town. This is a gorgeous development which surrounds a top class golf course. Equinelle is going to be a real eye catcher in the coming months. We also have our newest community off of Highway 43 the Westerra development which is taking off in high volume. Kemptville has a real promising future I believe and is going to expand to great levels.
Kemptville is also slotted to welcome Wal-Mart to our neighborhood in 2010. They have the parking lots all ready to bring the large store right into our town. It is also supposed to be accompanied by some big box stores as well. This location is right West of the 416 Highway at the County Rd 43 Kemptville exit.
If you are aware of anyone looking to make a move into a rural community that is 30 minutes to downtown Ottawa please do forward me there information. Kemptville is a great community and is surrounded by promising features and great environments for growing children.
www.joeysells.ca - Apply for your VIP Buyer List of homes in Rural Ottawa, FREE ONLINE HOME APPRAISAL
Friday, October 9, 2009
FORECLOSURE AND DISTRESS PROPERTY'S
What seems to be the most inviting deals in the market today are still on the rise. They reported yesterday that they expect Foreclosure Property's to increase in the market place over the next month or two. With them saying that we are on the rise out of the recession this seems to really boggle peoples minds. Why if we are exiting the recession are there still so many people losing there homes? I have sat down and really thought about this and here is my thought. I think that yes our market place in homes is definately on the rise and getting back to where it was 2 years ago. As far as the recession goes I believe we are on our way out of that hole as well. However I think that this recession has really taking an affect on a lot of family's. When you hit the point where you get laid off or your work does cutbacks on your pay or what have you it becomes a large fight to keep your head above water. I think that a lot of family's tried to see that light at the end of the tunnel however as the months went on it became smaller and smaller. Therefore I think the amount of family's whom have lost there homes or are going to lose there homes is just the result of our recession and the money problems it created for so many. We will see some foreclosures come on the market over the next 2 months and that is not the cause of us still being in a recession but more the result of the recession. As everyday passes and our market rises people will start to get back on there feet and once again crawl out of the nasty hole that they got placed into by this recession.
Foreclosure and Distress property's are very popular with Buyers. Why is that? Well the first thought on everyone's mind is WOW we can get a great deal. However there is a little more to it now. Foreclosure property's have to be put on at there market value minus any damages. 10 years or so ago they were put on the market at whatever was owed to the bank plus any legal fees and realtor fees. This is not the case anymore. I think the new way is great because if you lose a 400k house to the bank and you only owe 250k on it when they sell it after everything is said and done there will still be a significant amount of money leftover. Where does this money go you ask? Well it goes back to the owner of the home to give them a jump start at a new life. I think that is great. So many family's lose there home and have to start over. It is bad enough you have just taken a big 7 year hit on your credit bureau let alone having lost a home you owed nearly half the appraised value on. So now the government looks after them. In most cases these homes are financed to the max so in a lot of cases you don't ever see any money.
There are good deals to be found in Estate and Foreclosure property's if you are interested in getting on my automatic notifier list for Foreclosure or Distress property's in Ottawa and surrounding areas feel free to logon to www.joeysells.ca and click the Foreclosure icon. I will get you setup and you could find the next steal!
Foreclosure and Distress property's are very popular with Buyers. Why is that? Well the first thought on everyone's mind is WOW we can get a great deal. However there is a little more to it now. Foreclosure property's have to be put on at there market value minus any damages. 10 years or so ago they were put on the market at whatever was owed to the bank plus any legal fees and realtor fees. This is not the case anymore. I think the new way is great because if you lose a 400k house to the bank and you only owe 250k on it when they sell it after everything is said and done there will still be a significant amount of money leftover. Where does this money go you ask? Well it goes back to the owner of the home to give them a jump start at a new life. I think that is great. So many family's lose there home and have to start over. It is bad enough you have just taken a big 7 year hit on your credit bureau let alone having lost a home you owed nearly half the appraised value on. So now the government looks after them. In most cases these homes are financed to the max so in a lot of cases you don't ever see any money.
There are good deals to be found in Estate and Foreclosure property's if you are interested in getting on my automatic notifier list for Foreclosure or Distress property's in Ottawa and surrounding areas feel free to logon to www.joeysells.ca and click the Foreclosure icon. I will get you setup and you could find the next steal!
Thursday, October 8, 2009
MORE MARKET PREDICTIONS!
From Julian Beltrame, The Canadian Press, October 7, 2009 - 5:42 p.m.
House market bubble could bring quick end to low interest rates
By Julian Beltrame, The Canadian Press
Homes for sale are shown in Oakville, Ont., on Tuesday, April 14, 2009. THE CANADIAN PRESS/Nathan Denette
OTTAWA - The Bank of Canada's efforts to spark a rebound in the domestic housing market may be working too well.
A new TD Bank report shows house sales and prices have defied gravity during the severe economic recession and are poised to end 2009 at higher levels than they were before the downturn hit Canada last fall.
"After plummeting by nearly a third in the second half of last year, the seasonally-adjusted level of sales had climbed back by 61 per cent as of August," the report notes. That is more than pre-recession levels.
The paper goes on to say that the average price of homes sold is also rising and will likely end the year at $310,000, or 2.1 per cent higher than at the start of 2009.
Economists credit the central bank's policy of slashing interest rates the past year with reviving a dormant housing market - perhaps too much, too fast - leading to speculation that bank governor Mark Carney may have to reverse course and raise rates earlier than expected.
"We're not calling what we see presently a housing asset bubble," said TD economist Grant Bishop,
"We think it will moderate, but should it fail to moderate, it will no doubt be concerning to the bank."
Talk about exit strategies as the global economy improves has been building for months, particularly since most governments have ramped up spending beyond comfort levels and central banks have cut rates to the bone. Low interest rates, along with a loosening of controls, is largely blamed for the U.S. housing bubble earlier this decade that eventually triggering the global financial crisis.
U.S. Fed officials have recently begun to speculate about the proper time to raise the policy rate from zero, and European Central Bank policy-makers have also sounded more hawkish on interest rates, even though none country has moved to tighten.
On Tuesday, Australia, which never fell into a technical recession, went beyond talk by increasing the policy rate by a quarter point to 3.25 per cent, citing rising home prices in that country as a key concern.
The Bank of Canada has issued what it calls a conditional commitment not to raise its policy rate of 0.25 per cent - the lowest practical level - until at least July, but last week Carney went out his way to stress the pledge had plenty of conditions.
Devoting three paragraphs on the subject in a speech in Victoria, Carney concluded the section by stressing: "In short, it is an expectation, not a promise. If circumstances affecting the outlook for inflation change materially, the conditional commitment would change."
That cautionary language was closely observed by economists, who say it is not out of the question for the bank to start signalling it may start raising rates before its expectations.
But it would take housing prices and sales continuing to soar in the face of higher unemployment and a weak economy to cause the central bank to reverse course, argued Douglas Porter, deputy chief economist with BMO Capital Markets.
In a sense, that would be a perverse reaction, he added, since spurring home sales and other interest-sensitive sectors of the economy was what Carney had in mind when he started slashing rates in the first place.
"The bank will take asset prices into account," he said, "but I think they've got to see some pretty convincing signs the broader economy is recovering and recovering on its own before they start to move rates aggressively."
The present signals are going in the opposite direction. The flat growth reading registered in July shows the economic recovery is more fragile than robust, and many say the concerns over a so-called double-dip - where growth slows significantly after an initial brief spurt - have risen.
As well, the Bank of Canada is still dealing with negative inflation and has expressed no concern prices will get out of hand in 2010.
Finance Minister Jim Flaherty also seemed to dismiss talk of an exit strategy from stimulus for Canada, reaffirming Wednesday that the government intends to complete its two-year spending plans outlined in the January budget.
The exit from stimulus will come after that, he said.
"We have to make sure we stop the stimulus spending as planned, at that's at the two year mark. Then the funding will stop," he said.
House market bubble could bring quick end to low interest rates
By Julian Beltrame, The Canadian Press
Homes for sale are shown in Oakville, Ont., on Tuesday, April 14, 2009. THE CANADIAN PRESS/Nathan Denette
OTTAWA - The Bank of Canada's efforts to spark a rebound in the domestic housing market may be working too well.
A new TD Bank report shows house sales and prices have defied gravity during the severe economic recession and are poised to end 2009 at higher levels than they were before the downturn hit Canada last fall.
"After plummeting by nearly a third in the second half of last year, the seasonally-adjusted level of sales had climbed back by 61 per cent as of August," the report notes. That is more than pre-recession levels.
The paper goes on to say that the average price of homes sold is also rising and will likely end the year at $310,000, or 2.1 per cent higher than at the start of 2009.
Economists credit the central bank's policy of slashing interest rates the past year with reviving a dormant housing market - perhaps too much, too fast - leading to speculation that bank governor Mark Carney may have to reverse course and raise rates earlier than expected.
"We're not calling what we see presently a housing asset bubble," said TD economist Grant Bishop,
"We think it will moderate, but should it fail to moderate, it will no doubt be concerning to the bank."
Talk about exit strategies as the global economy improves has been building for months, particularly since most governments have ramped up spending beyond comfort levels and central banks have cut rates to the bone. Low interest rates, along with a loosening of controls, is largely blamed for the U.S. housing bubble earlier this decade that eventually triggering the global financial crisis.
U.S. Fed officials have recently begun to speculate about the proper time to raise the policy rate from zero, and European Central Bank policy-makers have also sounded more hawkish on interest rates, even though none country has moved to tighten.
On Tuesday, Australia, which never fell into a technical recession, went beyond talk by increasing the policy rate by a quarter point to 3.25 per cent, citing rising home prices in that country as a key concern.
The Bank of Canada has issued what it calls a conditional commitment not to raise its policy rate of 0.25 per cent - the lowest practical level - until at least July, but last week Carney went out his way to stress the pledge had plenty of conditions.
Devoting three paragraphs on the subject in a speech in Victoria, Carney concluded the section by stressing: "In short, it is an expectation, not a promise. If circumstances affecting the outlook for inflation change materially, the conditional commitment would change."
That cautionary language was closely observed by economists, who say it is not out of the question for the bank to start signalling it may start raising rates before its expectations.
But it would take housing prices and sales continuing to soar in the face of higher unemployment and a weak economy to cause the central bank to reverse course, argued Douglas Porter, deputy chief economist with BMO Capital Markets.
In a sense, that would be a perverse reaction, he added, since spurring home sales and other interest-sensitive sectors of the economy was what Carney had in mind when he started slashing rates in the first place.
"The bank will take asset prices into account," he said, "but I think they've got to see some pretty convincing signs the broader economy is recovering and recovering on its own before they start to move rates aggressively."
The present signals are going in the opposite direction. The flat growth reading registered in July shows the economic recovery is more fragile than robust, and many say the concerns over a so-called double-dip - where growth slows significantly after an initial brief spurt - have risen.
As well, the Bank of Canada is still dealing with negative inflation and has expressed no concern prices will get out of hand in 2010.
Finance Minister Jim Flaherty also seemed to dismiss talk of an exit strategy from stimulus for Canada, reaffirming Wednesday that the government intends to complete its two-year spending plans outlined in the January budget.
The exit from stimulus will come after that, he said.
"We have to make sure we stop the stimulus spending as planned, at that's at the two year mark. Then the funding will stop," he said.
Tuesday, October 6, 2009
STRENGTHENING REAL ESTATE MARKET!
Hot real estate could prompt Canada rate hikes: TD
TORONTO (Reuters) - Excessive real estate strength in Canada from ultralow mortgage rates could push the Bank of Canada to raise interest rates sooner or more aggressively than forecast, according to a TD Economics report on Tuesday.
The possibility is worth watching closely, the economics arm of Toronto-Dominion Bank <TD.TO> argued, although it also said the most likely scenario is that the real estate market will moderate and inflation will remain in check.
The Bank of Canada has pledged to keep its interest rates unchanged at 0.25 percent until mid-2010, unless it sees a threat of inflation spinning out of control.
TD pointed to recent statements by the central bank that hinted that it would seek to lean against signs of emerging asset bubbles and that it is also monitoring developments in home prices.
In a recent speech, Bank of Canada Governor Mark Carney deemed the strength in existing home sales as "temporary", reflecting "pent-up demand" and improved affordability.
"The (Bank of Canada's) view at the moment is that the recent resurgence in real estate is temporary, but if it does not moderate in the coming year -- or worse still if price growth accelerates -- it could lead to an earlier and more substantial tightening in policy than currently anticipated," TD economists Craig Alexander and Grant Bishop said in the report on Tuesday.
The economists stressed that the central bank targets the rate of consumer price growth and does not target asset values.
"The key issue is whether the low interest rate environment is creating an economic imbalance that requires a rebalancing of monetary policy," the TD economists said.
Canadian real estate markets have staged a stunning turnaround this year from the end of 2008 when sales and prices retreated sharply. The latest Canadian Real Estate Association data showed August home sales were up 18.5 percent from a year ago, while prices rose 11.3 percent nationally from a year earlier to an average C$324,779 ($306,395).
TD expects sales will cool in the coming months and for price growth to return to a mid-single digit pace after months of pent-up demand and tighter mortgage pricing.
"The base-case economic forecast does not anticipate that hot real estate markets will force the Bank of Canada's hand, but it is a risk worth closely monitoring," the TD economists said.
TD expects the Bank of Canada will begin to gradually lift the benchmark overnight interest rate in the fourth quarter of 2010.
($1=$1.06 Canadian)
(Reporting by Ka Yan Ng; editing by Rob Wilson)
TORONTO (Reuters) - Excessive real estate strength in Canada from ultralow mortgage rates could push the Bank of Canada to raise interest rates sooner or more aggressively than forecast, according to a TD Economics report on Tuesday.
The possibility is worth watching closely, the economics arm of Toronto-Dominion Bank <TD.TO> argued, although it also said the most likely scenario is that the real estate market will moderate and inflation will remain in check.
The Bank of Canada has pledged to keep its interest rates unchanged at 0.25 percent until mid-2010, unless it sees a threat of inflation spinning out of control.
TD pointed to recent statements by the central bank that hinted that it would seek to lean against signs of emerging asset bubbles and that it is also monitoring developments in home prices.
In a recent speech, Bank of Canada Governor Mark Carney deemed the strength in existing home sales as "temporary", reflecting "pent-up demand" and improved affordability.
"The (Bank of Canada's) view at the moment is that the recent resurgence in real estate is temporary, but if it does not moderate in the coming year -- or worse still if price growth accelerates -- it could lead to an earlier and more substantial tightening in policy than currently anticipated," TD economists Craig Alexander and Grant Bishop said in the report on Tuesday.
The economists stressed that the central bank targets the rate of consumer price growth and does not target asset values.
"The key issue is whether the low interest rate environment is creating an economic imbalance that requires a rebalancing of monetary policy," the TD economists said.
Canadian real estate markets have staged a stunning turnaround this year from the end of 2008 when sales and prices retreated sharply. The latest Canadian Real Estate Association data showed August home sales were up 18.5 percent from a year ago, while prices rose 11.3 percent nationally from a year earlier to an average C$324,779 ($306,395).
TD expects sales will cool in the coming months and for price growth to return to a mid-single digit pace after months of pent-up demand and tighter mortgage pricing.
"The base-case economic forecast does not anticipate that hot real estate markets will force the Bank of Canada's hand, but it is a risk worth closely monitoring," the TD economists said.
TD expects the Bank of Canada will begin to gradually lift the benchmark overnight interest rate in the fourth quarter of 2010.
($1=$1.06 Canadian)
(Reporting by Ka Yan Ng; editing by Rob Wilson)
Friday, October 2, 2009
Monday, September 28, 2009
Interesting information for 5 year home owners.
Hey everyone!
Thanks for visiting my blog. Today I am going to talk about interesting facts for folks who have owned there home for 5 plus years. Currently our market is booming. We have just changed back to a Sellers market. What does this mean for you the homeowner? Well we just went through a year of major decline, granted Ottawa saw very little in reduction of prices however we as Realtors noticed the slow moving market and the skeptical buyers. So now with the market changing and house prices once again rising it is time for homeowners who are looking to upgrade to a larger home, or homeowners looking to downsize to take advantage. How are you going to take advantage?
With prices rising and Buyers scrounging to find a home that suits them, you are sitting on a large amount of equity dollars. If you have been paying your mortgage down for the last 5 years you could be sitting on a large amount of investment dollars. By selling your home now you could cash out that money and payoff all that unwanted debt and still have a large down payment to buy your next home.
I think the best way for homeowners to look at it is this :
Example :
You bought your home for : 200k in 2004.
Your home is now worth : 330k in 2009
I list your home for: 339k
We sell your home for : 335k
Commission costs : $16,750
Lawyer costs : $1200
Leaving you with : $317,050
Now you have not remortgaged your home since you have owned it so your remaining amount on your mortgage is in and around the $150,000 area.
$317,050 - $150,000 = $167,050
That is a pretty large amount of money to cash out of your home. Now if we say you have $30,000 in debt you would really like to clear up and you would really like to buy that new car you have always wanted, you would be left with $100,000.
If you took that $100,000 and placed it as a downpayment on your next home you would not have to pay CMHC premiums. You would now own a significantly larger home. Lets use an example.
You want to upgrade to a 2700sqft 2 storey in Barrhaven. Purchase Price is $405,000. So we put in an offer and Joey works his magic and gets it to you for $395,000. Now we contact our financial people to get our information on how much your payments are going to be. Here is the breakdown.
Purchase Price : 395,000
DownPayment : 100,000
Total Owing : 295,000.
Loan Amount:
$295,000.00
Loan Insurance ( 0%):
$0.00
Total Loan(Mortgage) Amount:
$295,000.00
Principal & Interest:
$1,592.00
Homeowners Insurance:
$141.54
Property Taxes:
$395.00
Condo Fees:
$0.00
Monthly Loan Insurance (0%):
$0.00
Total Monthly Payment:
$2,128.54
So by doing this upgrade you could be in a significantly larger home with large amounts of value and have a payment of : $2128.54 and this would include Property Taxes as well as home insurance.
Sounds like a pretty good deal now doesn't it? This is just an example but it also gives you an idea of what you have to look forward to.
If you would like to discuss this further do contact me. http://www.joeysells.ca/Contact_Me/page_946440.html
If you have any friends and or family that you think I might be able to help make the kind of money you have in the last 5 years please do let me know or send them my information. I always do appreciate referrals.
To view My Listings or get a Free Online Home Appraisal please click here : www.joeysells.ca
Thanks very much for visiting and I hope to hear from you soon!
Thanks for visiting my blog. Today I am going to talk about interesting facts for folks who have owned there home for 5 plus years. Currently our market is booming. We have just changed back to a Sellers market. What does this mean for you the homeowner? Well we just went through a year of major decline, granted Ottawa saw very little in reduction of prices however we as Realtors noticed the slow moving market and the skeptical buyers. So now with the market changing and house prices once again rising it is time for homeowners who are looking to upgrade to a larger home, or homeowners looking to downsize to take advantage. How are you going to take advantage?
With prices rising and Buyers scrounging to find a home that suits them, you are sitting on a large amount of equity dollars. If you have been paying your mortgage down for the last 5 years you could be sitting on a large amount of investment dollars. By selling your home now you could cash out that money and payoff all that unwanted debt and still have a large down payment to buy your next home.
I think the best way for homeowners to look at it is this :
Example :
You bought your home for : 200k in 2004.
Your home is now worth : 330k in 2009
I list your home for: 339k
We sell your home for : 335k
Commission costs : $16,750
Lawyer costs : $1200
Leaving you with : $317,050
Now you have not remortgaged your home since you have owned it so your remaining amount on your mortgage is in and around the $150,000 area.
$317,050 - $150,000 = $167,050
That is a pretty large amount of money to cash out of your home. Now if we say you have $30,000 in debt you would really like to clear up and you would really like to buy that new car you have always wanted, you would be left with $100,000.
If you took that $100,000 and placed it as a downpayment on your next home you would not have to pay CMHC premiums. You would now own a significantly larger home. Lets use an example.
You want to upgrade to a 2700sqft 2 storey in Barrhaven. Purchase Price is $405,000. So we put in an offer and Joey works his magic and gets it to you for $395,000. Now we contact our financial people to get our information on how much your payments are going to be. Here is the breakdown.
Purchase Price : 395,000
DownPayment : 100,000
Total Owing : 295,000.
Loan Amount:
$295,000.00
Loan Insurance ( 0%):
$0.00
Total Loan(Mortgage) Amount:
$295,000.00
Principal & Interest:
$1,592.00
Homeowners Insurance:
$141.54
Property Taxes:
$395.00
Condo Fees:
$0.00
Monthly Loan Insurance (0%):
$0.00
Total Monthly Payment:
$2,128.54
So by doing this upgrade you could be in a significantly larger home with large amounts of value and have a payment of : $2128.54 and this would include Property Taxes as well as home insurance.
Sounds like a pretty good deal now doesn't it? This is just an example but it also gives you an idea of what you have to look forward to.
If you would like to discuss this further do contact me. http://www.joeysells.ca/Contact_Me/page_946440.html
If you have any friends and or family that you think I might be able to help make the kind of money you have in the last 5 years please do let me know or send them my information. I always do appreciate referrals.
To view My Listings or get a Free Online Home Appraisal please click here : www.joeysells.ca
Thanks very much for visiting and I hope to hear from you soon!
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